METALS-China metals mixed; lead gains as frigid weather persists

Reuters Staff

4 Min Read

SYDNEY, Jan 3 (Reuters) - Chinese base metals were mixed in
early trade on Wednesday, as the most active copper contract
slipped, while lead gained the sharpest as parts of the United
States braced for more frigid weather.
The peak demand period for lead, which is largely used to
make batteries, is during winters when the freezing weather
causes battery failures.
Commodities traders said mixed signals were also emerging
over the extent of China's demand for imported industrial metals
in 2018, which was dampening activity among some local
investors.
Optimism about Chinese demand was boosted overnight by an
unexpected December rise in manufacturing and a pick up in new
orders. But higher prices for raw materials and firms cutting
staff have fuelled concerns about growth.
However, Goldman Sachs said it sees more risks to the
upside than the downside for metals demand in China, playing
down concerns of a sharp decline from policy changes.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange
was down 0.2 percent at $7,187.50 a tonne, by 0123 GMT,
extending losses from the previous session.
* The most-traded copper contract on the Shanghai Futures
Exchange slipped 0.4 percent to 55,920 yuan
($8,615.01) a tonne.
* SHFE LEAD: ShFE lead was the top gainer on the
exchange, rising more than 1 percent at the start of trade,
while zinc gained a modest 0.6 percent, failing to
build on a significant move in the LME contract overnight to a
10-year price peak on expectations of supply deficit.
Lead was aided by forecasts for further cold weather in the
eastern United States, which could lead to greater demand for
replacement lead batteries in automobiles, a key market for the
metal.
* COLD FREEZE: A record-shattering freeze kept its grip on
much of the eastern United States on Tuesday, causing at least
seven deaths and closing schools as forecasters warned of a
storm that could slam some areas with blizzard conditions later
this week.
* CHINA BANK MOVE: China's central bank lifted its official
yuan midpoint CNY=PBOC to the highest level in over 1-1/2 years
to 6.4920 per dollar on Wednesday, breaching a key threshold,
reflecting broad dollar weakness and solid spot yuan
performance.
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or
MARKETS NEWS
* Asian stocks struck a fresh decade high on Wednesday as
risk appetites were whetted by a bevy of upbeat manufacturing
surveys that confirmed a synchronised upturn in world growth was
well under way.
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS
($1 = 6.4910 Chinese yuan)
(Reporting by James Regan; Editing by Sherry Jacob-Phillips)